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Mexico should leave IEA, eye OPEC: Pemex adviser

  • Market: Oil products
  • 19/09/18

Mexico should end its recently acquired membership in the International Energy Agency (IEA) and instead look towards Opec, said a long-time Pemex adviser slated for a role in the state-owned company.

"We should explore the possibility of better cooperation with OPEC," Fluvio Ruiz said today at Rice University's Baker Institute.

The incoming administration of Mexico's President-elect Andres Manuel Lopez Obrador has not defined what Ruiz's role will be in Pemex, but the former Pemex board member has been outlining his proposals to "make Pemex great again" at forums in Mexico and abroad.

"I will be something in Pemex," Ruiz said. "I am not sure what yet."

Leftist Lopez Obrador and his transition team — of which Ruiz is not officially a part — have sent mixed messages about the degree of openness to private energy investment that will continue after they take office on 1 December. His predecessor Enrique Pena Nieto led a groundbreaking energy reform that ended state dominance of the energy sector. But in the five months between the general elections and inauguration, the announced policy intentions have overall moved away from Lopez Obrador's initial outright opposition to the energy reform.

The Paris-based IEA supports market-oriented policies as well as renewable energy goals. Mexico is currently participating as a non-partner in Opec's supply restraint agreement, although the Latin American country's crude output has been in decline for years.

The IEA only approved Mexico's membership in November 2017, which provides Mexico with some technical assistance from the organization and offers collaboration with other members in energy emergencies.

Mexico in 2017 reduced its carbon emission by 4pc from the prior year, the only other IEA member country to do so besides the US, Japan and the UK.

Ruiz said he supports Mexico determining more of its own energy goals without having to meet compliance with IEA membership.

He also said that he proposed Pemex marketing arm PMI being the only seller of state crude from fields operating under production-sharing agreements.

Swiss company Trafigura in December had beat out PMI in an auction to sell crude on the country's behalf for the next three years.

Ruiz said that private companies should continue to market their own share of any crude produced in Mexico as they are now, although independent crude production is still low.

Incoming energy minister Rocio Nahle is leading a review of 107 upstream contracts signed under Mexico's market opening, but Ruiz said there is another objective besides ensuring transparency.

"We want to learn from the contracts that have already been given to understand what is the best model for the type of geological complexity we might see in the future," he said. Licenses, production-sharing and joint ventures could all be appropriate, depending on the conditions and terms, he said.

But he reiterated that Pemex should be allowed to select its own farm-out partners and have greater managerial and budgetary freedom, including being excluded from the central budget.

Ruiz also maintains that three oil auctions initially set for September and October but postponed until 14 February at the request of Lopez Obrador could restart next year.

Yet Ruiz acknowledged that there are different currents within the new administration.

"My sister says I always take the minority position," Ruiz joked. "Even in the new government, I am a minority."


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18/09/24

Citgo auction result delayed amid last-minute motions

Citgo auction result delayed amid last-minute motions

Houston, 18 September (Argus) — The US court-appointed special master overseeing the auction of US refiner Citgo plans to object to a last-minute motion from the Venezuelan government to delay the sale process by four months. The Republic of Venezuela and state-owned oil company PdV filed a motion on Tuesday seeking a four-month pause in the sale of its refining subsidiary Citgo, which is being auctioned off to satisfy debts owed by PdV. Special master Robert Pincus said in a court filing today that he intends to object to Venezuela's motion for a pause. The last-minute motion from Venezuela comes days after the US District Court for the District of Delaware was expected to announce results of the winning bidder. The court asked for a second extension to the auction process in August, delaying announcing a successful bidder to on or about 16 September with a sale hearing on 7 November. But Pincus is now dealing with last-minute legal challenges filed last week outside of the Delaware courts by so-called "alter ego" claimants seeking to "circumvent" the Delaware court's sales process and "jump the line" for enforcing claims against PdV, the special master said in a filing last week. Bidders for Citgo's 804,000 b/d of refining capacity, terminals, retail fuel stations and other plants expect the assets to be sold free and clear of future claims by PdV creditors. Unresolved legal liabilities could lower the value bidders are willing to pay for Citgo, decreasing the pool of money available to those owed by PdV. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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USCG updates ongoing lower Mississippi restrictions


17/09/24
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17/09/24

USCG updates ongoing lower Mississippi restrictions

Houston, 17 September (Argus) — The US Coast Guard (USCG) will further limit northbound movement for barges transiting the lower Mississippi River despite slightly higher water levels following Hurricane Francine's landfall late last week. The USCG announced on 16 September that all northbound traffic traveling from Tunica, Mississippi, to Tiptonville, Tennessee, can only have five barges wide and only four of those can be loaded. Barges also cannot be loaded deeper than 9.5ft. Any southbound traffic from Vicksburg, Mississippi, to Tunica cannot move more than seven barges wide or be drafted deeper than 10.5ft. Southbound traffic from Tiptonville to Tunica can only be six barges wide or less and cannot have a draft greater than 10ft. The USCG has updated lower Mississippi river draft restrictions about four times since the end of August, but this is the third year in a row of notable low water for the fall on the lower Mississippi river which has triggered draft restrictions to arrive more quickly than previous years. Hurricane Francine brought significant rainfall to the lower Mississippi at the end of last week . But this has not eased the minds of mariners, who anticipate the water may leave as quickly as it arrived. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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California regulator floats future LCFS linkage


17/09/24
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California regulator floats future LCFS linkage

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California still eyeing 2025 start to LCFS changes


17/09/24
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17/09/24

California still eyeing 2025 start to LCFS changes

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Indonesia issues regulation to build energy reserves


17/09/24
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17/09/24

Indonesia issues regulation to build energy reserves

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